Please refer to important disclosures at the end of this report
1
Procter & Gamble Hygiene and Health Care (P&G) Limited is an India-based
company engaged in the manufacturing and selling of branded packaged fast
moving consumer goods in the femcare and healthcare businesses. P&G is a
market leader in both of its product, ie Whisper (female hygiene segment) and
Vicks (healthcare segment Ointment, Creams, Cough Drops etc). The penetration
level of sanitary napkins is around 12% to 15% across India, whereas the rural
penetration is in single digits, which is very low as compared to rest of the world.
This low penetration will be the major growth driver for future volume growth o
f
feminine hygiene segment of P&G which contributes around 68% to 70% of the
total revenue and enjoys market leadership with 50% to 55% of the total market
share. Awareness among school girls through the program called ‘Parivartan’,
educating about menstruation and their need for better hygiene has helped to
push the growth ahead, which is also expected to drive the growth in future as
well. With the anticipated increase in top line due to lower penetration o
f
Feminine Hygiene products, strong brand positioning, spreading awareness of its
affordable products, with strong balance sheet & financial ratios, earning an
average RoE of 30% in last 5 years it is expect that the consumer expenditure will
further increase as the economy revives and hence there will be growth in P&G’s
top line and bottom line as well. The company is virtually debt free and has good
consistent profit growth of 23% CAGR over 5 years. Hence Buy.
BUY
CMP `6,734
Stock Info
Sector
Beta 0.2
Bloomberg Code
Shareholding Pattern (%)
Promoters 70.6
MF / Banks / Indian Fls 12.8
FII / NRIs / OCBs 4.2
Indian Public / Others 12.4
Abs. (%) 3m 1yr 3yr
Sensex (6.6) 2.7 28.9
P&G Hygiene (1.1) 17.7 139.7
52 Week High / Low 7280/5171
Avg. Daily Volume 1,987
FMCG
Market Cap (
`
cr) 21,841
10
BSE Sensex 26,305
Nifty 8,108
Face Value (
`
)
Reuters Code PROC.BO
PG@IN
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
P & G Hygiene and Health Care
Others | FMCG
November 16, 2016
P & G Hygiene | FMCG
November 16, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement P & G Hygiene and Health Care
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)